Question

Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount of maintenance cost to the Carpentry Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000?

Department Students Classrooms
Electrical 120 10,000 sq. ft.
Welding 70 12,000 sq. ft.
Accounting 50 8,000 sq. ft.
Carpentry 40 6,000 sq. ft.
Total 280 36,000 sq. ft.

Answer 1

$2,000

Step-by-step explanation:

The computation of the total amount of maintenance cost is shown below:-

Total amount of maintenance cost allocated to the Carpentry Department = (Maintenance fees ÷ Total square feet) × Carpentry Department square feet

= ($12,000 ÷ 36,000) × 6,000

= 0.333 × 6,000

= $2,000

Therefore for computing the total amount of maintenance cost we simply applied the above formula.